08-10-2012, 05:36 PM
Oil and Gas Sector
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Overview of Indian Economy
An emerging economy with 5868332 cr. Rs. GDP and a growth rate of 7.4 per cent (2009-10)
A rising economy led by industrial and service growth
Overall growth in industrial output - 10.8 per cent
Growth in the industrial sector in 2009-10 is 9.2 per cent. Expected increase in 2010-11-9.4 per cent
The net foreign fund investment crossed the US$ 100 billion mark on November 8 2010, since the liberalization policy was implemented in 1992
Oil & Gas sector has a long history in India-
Oil struck at Makum near Margherita in Assam in 1867
First commercial oil discovery in Digboi in 1889
Systematic E&P in 1899 after Assam Oil Company formed
1947 India’s domestic oil production just 250,000 tonnes per annum
1954 IPR - petroleum to be core sector
1955 – ONGC set up
1958 - First Gas & Oil pool discovered in Jwalamukhi (Punjab) and Cambay. Oil India Limited (OIL) was set up
MAIN FEATURES OF NELP
1)Fiscal stability provision in the PSC (Production
Sharing Contract ).
2)No signature, discovery or production bonus.
3)No customs duty on imports.
4)No mandatory state participation.
5)No carried interest by National Oil Companies (NOC).
6)Freedom to the contractor for marketing of oil & gas in the domestic market.
Alternative fuels scenario
Coal Bed Methane (CBM)
Methane trapped in coal seams. 26 blocks awarded in three rounds of bidding. Production potential of over 25 MMSCMD
Underground Coal Gasification (UCG)
Huge potential in India to get natural gas through UCG. ONGC has signed agreement with Sckochinsky Institute of Mining, Russia to harness world class technology to tap this energy source
Foreign Direct Investment
FDI up to 100 per cent under the automatic route is permitted in exploration activities of oil and natural gas fields , along with marketing, infrastructure investment
The Vedanta-Cairn Deal
Government is encouraging oil PSUs to aggressively pursue equity oil and gas opportunities overseas
OVL has made an investment commitment of over US$ 5 Billion and has an oil and gas production of 6.6 MMTOE in the year 2005-06
OIL–IO Ccombine has an exploration block in Libya apart from being OVL partners. GAIL has interest in one Myanmar offshore block.